[June 20, 2007] Hennes & Mauritz says 2nd-quarter profit rose 31 percent Tweet (Associated Press WorldStream Via Thomson Dialog NewsEdge) STOCKHOLM, Sweden_Hennes & Mauritz, Europe's second-largest clothing retailer, said Wednesday that second-quarter profit rose 31 percent after the company opened new stores and the Madonna-branded collection was well-received by customers. The company also announced a collaboration with Italian designer Roberto Cavalli. Net income for the three months through May 31 rose to 3.47 billion Swedish kronor (US$727 million; 541 million), from 2.65 billion kronor in the same period a year earlier, H&M said in a statement. Sales gained 18 percent to 20.05 billion kronor (US$5.2 billion; 3.9 billion). "The spring collections have been well received by the customers during the whole first half-year," the company said. H&M shares dipped 1.3 percent to 417 kronor (US$59.47; 44.26) in Stockholm, however. Hennes & Mauritz opened has been opening new stores _ bringing the total to 1,420 _ at the same time expanding its shoes business. The company also introduced a range of clothes branded with pop singer Madonna's name. "The expansion of online and catalog sales in the Netherlands and of shoes has surpassed expectations," the company said. H&M also specifically cited its high expansion pace during the quarter, with stores opened in the new markets of Hong Kong, Shanghai, Slovakia, Greece and Qatar. It also said the Madonna collection had been "well received" by customers. The company said the Cavalli collection of menswear and womenswear will be available in about 200 of H&M's stores starting Nov. 8. "I love freedom and challenges: breaking down barriers, experimenting in different directions. H&M is all this for me," Cavalli said in a statement. For the first six months of the year, net income rose to 5.1 billion Swedish kronor (US$727 million; 541 million), from 3.92 billion kronor in the same period a year earlier, the company said. Sales gained 15 percent to 36.8 billion kronor (US$5.2 billion; 3.9 billion). Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. [ Back To TMCnet.com's Homepage ]